Guarantees for micro-credit providers

We offer to micro-credit providers - acting as our financial intermediaries - capped guarantees partially covering portfolios of micro-loans or guarantees on micro-loans granted to micro-enterprises, including self-employed people, female entrepreneurs, young entrepreneurs, entrepreneurs belonging to a minority group, entrepreneurs with a disability, sole traders etc. Depending on the type of intermediary and its activity, we can offer two guarantee products under the European Progress Microfinance Facility:

Direct guarantees	Counter-guarantees
covering portfolios of micro-loans to micro-enterprises, including self-employed people, as defined by the European Commission	covering portfolios of guarantees on micro-loans to micro-enterprises, including self-employed people, as defined by the European Commission

Who is eligible to apply as an intermediary under Progress Microfinance?

Eligible intermediaries are any public and private institutions that provide microfinance loans and/or guarantees to individuals or micro-enterprises established in the EU Member States. These could include:

Financial institutions
Microfinance institutions
Guarantee institutions
Other institutions authorised to provide microfinance loans/guarantees

How EIF selects intermediaries ?

EIF will examine the proposals in chronological order of receipt, using best business practices and avoiding any conflict of interest, and will pre-select applications in accordance with a pre-selection procedure. Satisfactory applications will be followed up with an on-site due diligence visit. Pre-selected applications are proposed to the EIF Board of Directors and to the European Commission on behalf of the European Union for approval. By pre-selecting applications, EIF does not bind itself to entering into a micro-credit guarantee or any other agreement with the applicant institution, nor is the institution bound to entering into a micro-credit guarantee with EIF. The selection of intermediaries will take into account, inter alia, the following selection criteria:

Financial standing
Operational capability
Ability to provide the necessary data to EIF
Ability to comply with the terms and conditions of the agreement
Expected impact in terms of financing volumes, number of final beneficiaries and geographical reach
For clarification, in order to achieve a well diversified and homogeneous portfolio and to allow a reasonable estimation of the portfolio risk profile, the intermediary will be requested to include in the portfolio a minimum of approximately 100 micro-loans per year
Ability to comply with the reporting requirements

How to apply to become an intermediary ?

You can apply until 31 December 2015 (subject to the availability of budgetary funds). You should send your application both by e-mail to progress@eif.org and in hard copy to:
European Investment Fund
European Progress Microfinance Facility
Guarantees & Securitisation Team
15 avenue J.F. Kennedy
L-2968 Luxembourg

Interested microfinance providers need to submit a formal application - in English - covering all the points outlined in the following documents:

CIP or Progress?

You are a micro-credit provider: before applying to CIP or Progress Microfinance guarantees, check this graph to assess
which initiative suits best to your objectives.